Debt Awareness Week - Investing in Young People

The cost of living crisis is affecting everyone, but for young adults who don’t typically have good financial literacy, the impact has been overwhelming. The rise in rents and stagnant wages have led to a huge increase in borrowing in young people aged 18-34.

A 2022 report from MoneyTransfers found that people aged between 18 and 34 were the most likely to be in debt with personal and payday loans being the most common problem. A similar survey poll of 2,000 young people aged 18-34 which was conducted by The Mortgage Lender found that 11 per cent had taken out a payday loan, which typically have much higher interest rates. Opportunities to ‘Buy Now Pay Later’ have grown exponentially since the pandemic, and despite aiming to ease the situation, Citizens Advice found that 51% of 18 - to 34-year-olds borrow money to pay off debts accrued through Buy Now Pay Later schemes.

Money worries and getting into debt cause huge anxiety at any age, but the mental health consequences for young people can be profound. In 2022, Young Minds conducted a study exploring financial anxiety in young people and found that 80% of 20-25 year olds were worried about not having enough money and not earning enough. When young people start losing sleep over financial concerns, it can rapidly spiral into depression and 2019 NatCen research which explored ‘Suicide and self-harm in Britain’ found that the more problem debts someone has, the greater their risk of suicide.  

In an ideal world, young people would seek support before their financial problems become overwhelming, but debt is shameful and that makes it much harder to ask for help. Within the Tellmi app, young people talk anonymously about the impact that the cost of living crisis is having on their lives, their relationships and their mental and physical health.  

“My boyfriend dumped me because of my debts and now he has blocked me. I’m scared and alone”

“I don’t know where to start. I’m in so much debt and I cant see a way out. My mental health is shot and I am desperate 💔”

‘I'm literally freezing but I won’t turn the heating on as it costs too much money.’

‘I think it is obvious that I am not ok. I am not sleeping and getting migraines - mostly because of money’

Tellmi provides young people with a safe space to talk about financial concerns and get support and advice from other young people who have dealt with the same issues. Tellmi is 100% pre-moderated by humans and high risk posts are picked up by in-house counsellors. Our pre-emptive counsellor intervention means young people who need additional support don’t have to ask for help. Help comes to them.

Within Tellmi, young people can access a directory of over 600 crisis and specialist support services including StepChange Debt Advice and local Citizens Advice services. When a young person is in debt, getting good advice and putting a financial plan in place is the first step to solvency, so if you, or someone you love, is worried about money, tell them about Tellmi.  

Tellmi is available on The App Store and Google Play.